April 20, 2022
By Anjali Kochhar
The cryptocurrency industry has come out in support of Indian finance minister Nirmala Sitharaman’s statement of introducing a global regulatory framework for cryptos.
“Money laundering and terror financing are the biggest concerns around crypto currency,” Sitharaman said while speaking at a seminar on Monday of the International Monetary Fund (IMF). She is on an official visit to attend the spring meetings of the IMF and the World Bank.
“I think the regulation using technology is the only solution. Regulation using technology will have to be so adept that it has to be not behind the curve, but be sure that it is on the top of it. And that is not possible if any one country thinks that it can handle it. It has to be across the board,” the minister said.
As soon as the statement came out in public, industry players hailed it.
Jennifer Lu, Cofounder at Singapore-based exchange CoinStore said, “Countries around the globe must collaborate and create a homogeneous regulatory framework to regulate the crypto/blockchain industry.”
“India is a tech superpower of the world and is capable of leading the mass adoption of crypto if nurtured with a healthy regulatory environment. We strongly believe that India as a crypto market has a huge potential to create jobs and contribute to the growth of the country’s economy,” Lu told Blockchain Asset Review.
Alisagar Merchant, Developer Relations Engineer at blockchain firm Ignite, also supported finance minister’s statement, adding that this also needs input from all member nations so that a framework can be put together for crypto adoptions.
“This is a positive step in the adoption of crypto. Leaders throughout the world have started recognizing that crypto is not just a hype that will pass away but a way of exchanging payment,” Merchant told Blockchain Asset Review.
“The minister also rightly points out that only technology can help shape such a framework. But for the technology to be able to take its shape, there should be an investment in R&D,” he added.
It should be noted that while the government of India introduced taxation on digital assets in Budget 2022-23, there are still grey areas in regulations that need to be addressed.
Industry insiders have time and again raised concerns about the same.
On a recent incident that led to a freezing of crypto payments in the country, industry players demanded more clarity on regulations.
Shivam Thakral, CEO of Indian exchange BuyUcoin said, “We have seen a sharp decline in volumes (over 60-70%) compared to last year since April 1, but a clear and supportive regulatory environment for crypto in India will lead to new inflow of funds from accredited institutional investors along with fostering safe and secure retail trading.”
“Lack of clarity and confusion can hamper all major innovations and drastically reduce employment generation through the nascent crypto ecosystem of India,” Thakral told Blockchain Asset Review.
Similarly, Raj Kapoor of aCryptoverse said, “Even though the initial regulatory mandate for crypto in India has been clarified significantly there seems to be enough wriggle room for interpretation as is evident from the reactions after National Payment Council of India’s comments.”
This has led crypto exchanges to take an overcautious way so as to not antagonise the regulators, Kapoor believed.
Image wikimedia commons
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.